Creating the Worldâ€™s Premier Biopharmaceutical Company

Creating the World’s Premier Biopharmaceutical Company

January 26, 2009

Creating the World’s Premier Biopharmaceutical Company2

Forward-Looking Statements and Non-GAAP Financial Information

Discussions during this conference call will include forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ are discussed in Pfizer’s 2007 Annual Report on Form 10-K and in our reports on Form 10-Q and Form 8-K.

Discussions during this during this conference call will include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of those non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures can be found in Pfizer’s Current Reports on Form 8-K dated January 26, 2009.

These reports are available on our website at www.pfizer.com in the "Investors—SEC Filings" section.



Jeff KindlerChairman and Chief Executive Officer



Human, Animal, Consumer Health; NutritionalsPrimary and Specialty CareVaccines, Biologics and Small MoleculesDeveloped and Emerging Markets

Extends Global Health Care LeadershipExtends Global Health Care Leadership

Definitively addresses revenue loss from Lipitor loss of exclusivity (LOE)Forms broad, diversified portfolio of growth driversSupports continuing progress in establishing a lower, more flexible cost base

Strengthens Platforms for Improved, Consistent and Stable Earnings Growth

Strengthens Platforms for Improved, Consistent and Stable Earnings Growth

Focused, agile business unitsBacked by resources, scale of global enterpriseSignificant financial resources available for investment

Drives Improved Performance Through Unique, Flexible Business Model

Drives Improved Performance Through Unique, Flexible Business Model

Augments in-line and pipeline portfolio in “invest to win” disease areasEnhances scientific, manufacturing and pharmaceutical science capabilitiesProvides the best opportunities for world class, high performing talent

Enhances Ability to Meet Unmet Needsof Patients, Physicians and

Other Customers

Enhances Ability to Meet Unmet Needsof Patients, Physicians and

Other Customers

Significantly Advances Each Stated Strategic Priority in a Single Transaction


Pfizer Has Transformed Itself and is Ready for This Acquisition

Primary Care

Specialty Care Oncology Established

ProductsEmerging Markets

Animal Health

ManufacturingManufacturing

Supporting FunctionsSupporting Functions

Business UnitsBusiness Units

DevelopmentDevelopment Sales & MarketingSales &

MarketingMedicalMedical

Research and Biotherapeutics &

Bioinnovation Center

Research and Biotherapeutics &

Bioinnovation Center

CustomerFocused

Well Positioned for the Wyeth Transaction


Why Wyeth Is Right For Pfizer

Each of Pfizer’s Strategic Objectives Advanced in a Single Transaction

Stated ObjectiveStated Objective Wyeth Presence / CapabilityWyeth Presence / Capability

Become a Leader in BiologicsBecome a Leader in Biologics

Enter the Vaccines MarketEnter the Vaccines Market

Expand Invest to Win AreasExpand Invest to Win Areas

Strengthen Leadershipin Emerging Markets

Strengthen Leadershipin Emerging Markets

Create New Opportunitiesfor Established Products

Create New Opportunitiesfor Established Products

Invest in Complementary Businesses

Invest in Complementary Businesses

Establishes a Lower andMore Flexible Cost BaseEstablishes a Lower andMore Flexible Cost Base

Enbrel, manufacturing excellence, pipeline

Prevnar, strong late-stage pipeline

Promotes long-term growth and stability

Adds Consumer and Nutritionals businesses, strengthens Animal Health business

Increases breadth and depth of portfolio

Solidifies leading position with new products

Augments in-line and pipeline portfolios in inflammation, neuroscience, oncology and infectious disease


Diversification by Therapies

TodayToday Projected 2012Projected 2012

6%

31%

6% 5%

11%

27%

8%

4%

Other Primary

AnimalHealth

Oncology

ID*Other

Specialty

Total Specialty17%

5%35%

3%5%6%

11%4%

4% 6%

10%

10%

Nutritional

AnimalHealth

OncologyInflammation

Other Specialty

Total Specialty30%

Consumer

ID*

TotalPrimary

75%

UrologyCNS*

CV*

Other Primary

Urology

CNS*

CV*

Capsugel 2%

Capsugel 1%

* Infectious Disease (ID), Cardiovascular (CV), Central Nervous System (CNS)

TotalPrimary

55%


Diversification by Platforms

6%

90%

Small Molecule

AnimalHealth Biologics 2%

6%11%

5%

70%

4%

Small Molecule

AnimalHealth Biologics

ConsumerVaccines

Capsugel 2% NutritionalCapsugel 1%

TodayToday Projected 2012Projected 2012

3%


R&D Focus on Innovative Therapies in Key Areas of Unmet Medical Need

Expands High Priority Disease Areasand Enhances Biologics CapabilitiesExpands High Priority Disease Areasand Enhances Biologics Capabilities

Neuroscience OncologyInflammation Metabolic Disorders

Vaccines Infectious Diseases Biotherapeutics


Revenue Leadership in Key Product Areas

Significantly diversified combined company35% non-small molecule/primary care

Complementary Animal Health#4 ConsumerNutritionals

#1 Animal Health`

Diversification

#1 Primary care#1 CV#2 CNS

#2 Specialty1

#2 ID#4 Immunology#8 Oncology

#4 Vaccines

#9 Primary care

#7 CNS

#8 Specialty1

#7 ID#4 Immunology

#4 Vaccines

#1 Primary care#1 CV#4 CNS

#10 Specialty1

#3 ID

#9 Oncology

Biopharma Leadership

Source: IMS Data, Company estimates, Wall Street Research(1) Specialty = products where predominant prescriber is a specialist (oncologist, rheumatologist, psychiatrist, pediatrician, etc.)

+


Revenue Leadership in Key Geographic Areas

#1 (12% share)

#1 (10% share)

#1 (7% share)

#1 (6% share)

#1 (6% share)

#4 (6% share)

#12 (3% share)

#10 (3% share)

#12 (1% share)

#15+

#15+

#15+

#1 (9% share)

#2 (7% share)

#1 (6% share)

#1 (6% share)

#1 (6% share)

#4 (6% share)

US

Europe

Asia (ex Japan)

Japan

Latin America

Eastern Europe(CEER1)

GeographicLeadership

Source: Approximate share as reported by IMS Data, Company estimates and Wall Street Research(1) Includes Belgium, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Luxembourg, Poland, Slovakia, Slovenia

+


Creating the Premier Health Care Portfolio

CNSCVWomen’s HealthUrologyPainAlzheimer’s Disease

OncologyOphthalmologyInflammationImmunologyPsychosisInfectiousVaccines

VitaminsAnalgesicsCough / ColdInfant / Children’s Formulas

VaccinesParasiticidesAnti-Infectives

Primary2008 Revenue: ~$46B*

Primary2008 Revenue: ~$46B*

Specialty2008 Revenue: ~$17B*

Specialty2008 Revenue: ~$17B*

Consumer/Nutritionals

2008 Revenue: ~$4B*

Consumer/Nutritionals

2008 Revenue: ~$4B*

Animal Health2008 Revenue: ~$4B*Animal Health

2008 Revenue: ~$4B*

Total Revenue: ~$71 Billion*+

Total Revenue: ~$48 Billion

* Unaudited figures


Focused Business Units Backed byGlobal Resources

The Spirit of Small, the Power of Scale

Financial strength and flexibility

Scale and ReachScale and Reach

Relevance to payors

Diversification and stability

Fixed cost efficiencies

Critical mass in key areas

Agility and SpeedAgility and Speed

Entrepreneurial culture

Patient-centric decision making

P&L responsibility

Operational accountability

Ability to harness scale

Frank D’AmelioChief Financial Officer


Income Statement Highlights

--48,20948,341(4%)12,79512,311Adjusted Revenues(1)

Full YearFull YearFourth QuarterFourth Quarter

ChangeChange2007200720082008ChangeChange2007200720082008

11%2.182.4230%0.500.65Adjusted Diluted EPS(1)

8%15,11316,36629%3,4024,389Adjusted Income(1)

3%1.171.20(90%)0.400.04 Reported Diluted EPS

--8,1448,104(90%)2,724266Reported Net Income

--$48,418$48,296(4%)$12,870$12,346Reported Revenues

Adjusted Income(1) and Diluted EPS(1) Increased on Both a Quarterly and Full-Year Basis; Full-Year EPS Growth Outpacing Revenue Growth

($ Millions, Except Per-Share Amounts)

(1) Adjusted Income and its components and Adjusted Diluted EPS are defined as Reported Net Income and its components and Reported Diluted EPS, excluding Purchase Accounting Adjustments, Acquisition-Related Costs, Discontinued Operations and Certain Significant Items.


2008 Financial Guidance vs. Actual

Decrease of $2.8 Billionversus 2006 on a constant

currency basis (3)

Decrease of at least $2 Billion versus 2006 on a constant

currency basis (3)Adjusted Total Costs(5)

22.0%21.5% to 22.0% Effective Tax Rate(4)

$2.42 $2.36 to $2.41Adjusted Diluted EPS(1)

$1.20 $1.61 to $1.71Reported Diluted EPS

$7.5 Billion$7.3 to $7.6 BillionAdjusted R&D Expenses(1)

$14.0 Billion$14.4 to $14.7 BillionAdjusted SI&A Expenses(1)

ActualGuidance

14.6%15.0% to 15.5%Adjusted Cost of Sales(1)(2)

$48.3 Billion $48.0 to $49.0 BillionAdjusted Revenues(1)

Met Full-Year Revenue Guidance; Exceeded Full-Year Adjusted Diluted EPS(1)

Guidance and Adjusted Total Cost(5) Reduction Target

(1) See Slide 16 for definition. (2) As a Percentage of Adjusted Revenues(1). (3) At 2006 Exchange Rates. (4) On Adjusted Income(1) (5) Adjusted Total Costs represents the total of Adjusted Cost of Sales(1), Adjusted SI&A(1) and Adjusted R&D(1).


2009 Financial Guidance

$500 to $700 MillionAdjusted Other Income(2)

$1.34 to $1.49Reported Diluted EPS(5)

$1.85 to $1.95Adjusted Diluted EPS(2)

Approximately 30% Effective Tax Rate(4)

$7.1 to $7.5 BillionAdjusted R&D Expenses(2)

GuidanceGuidance(3)(3)

$0.16 per quarterDividends per Share (Qtr 2 – Qtr 4)

Absolute Net Savings of Approximately$2 Billion by 2011 vs. 2008(6)Adjusted Total Cost(1) Reduction

$13.5 to $14.0 Billion Adjusted SI&A Expenses(2)

14.5% to 15.5%Adjusted Cost of Sales(2) as a Percentage of Adjusted Revenues(2)

$44.0 to $46.0 BillionAdjusted Revenues(2)

(1) Adjusted Total Costs represents the total of Adjusted Cost of Sales(2), Adjusted SI&A(2) and Adjusted R&D(2). (2) See Slide 16 for definition. (3) Except as noted, at January 2009 exchange rates. (4) On Adjusted Income(2). (5) Excludes potential effects of business development transactions not completed as of December 31, 2008 and of litigation-related matters not substantially resolved as of December 31, 2008. (6) At average 2008 exchange rates.

2009 Guidance Includes $1 Billion Reinvestment in Business


2009 Guidance Bridge

(~$0.04)–Interest Income

(~$0.04)–Pension Expense

Adjusted Diluted EPSAdjusted Diluted EPS(1)(1)Adjusted RevenueAdjusted Revenue(1)(1)

$1.85 – $1.95$44.0 – $46.0 billion2009 Guidance(2)

(~$0.21)–Effective Tax Rate(3)

(~$0.21)(~$3 billion)Foreign Exchange

$2.42$48.3 billionFull Year 2008 Results

(1) See Slide 16 for definition. (2) At January 2009 exchange rates. (3) On Adjusted Income(1).

2009 Underlying Business Performance Expected to be Comparable to 2008


Financial Terms

Transaction Currently Valued at Approximately $68 Billion

Expected at end of Qtr 3 / Qtr 4 2009Transaction Close

Pfizer shareholders will own approximately 84%of the stock in the combined companyOwnership

Second full year following closeTime to Accretion

Combination of cash, debt and equityFunding

$33 per share in cash Current value of $17.19 per share in equity(fixed exchange ratio of 0.985)

Cash/Share Mix

Acquire all outstanding Wyeth common sharesCurrently valued at $50.19 per share*

Purchase Price

*Based upon Pfizer’s January 23, 2009 closing price.


23.0 BillionPfizer Stock

$68.0 Billion

22.5 Billion

$22.5 Billion

Total

Debt

Cash

SourcesSources

Transaction Funding

Commitment from syndicate of banks for debt financing

JPMorgan, Bank of America Merrill Lynch, Barclays, Citigroup, Goldman Sachs

Anticipated credit ratingsMoody’s: A1/Stable long term, P1/affirmed short term

S&P: AA/Stable long term, A1+/confirmed short term

Funding via Combination of Cash, Debt and Equity


$0B

$2B

$4B

$6B

$8B

$10B

$12B

Meaningful Savings

50% within 12 months



Approx. 50% from SI&A; remaining from R&D and Manufacturing$2.8 Billion

$400 Million

Wyeth

$2B of Savings Announced Today Plus $4B of Deal Savings

Savings Planned Post-CloseQtr 4 2009-2012

Savings Planned Post-CloseQtr 4 2009-2012

Savings Achieved2007-2008

Savings Achieved2007-2008

Savings Planned

2009-2011

Savings Planned

2009-2011

Pfizer Pfizer

$2.0 Billion

$4.0 Billion

Approx. 15% combined company workforce reduction


Cash PositionCash Position Net positive

2012 Financial Targets

Transaction Addresses Revenue Loss from Lipitor LOE

Total RevenuesTotal Revenues Comparable to pro forma 2008 results of ~$70 billion

Adjusted Operating Margin(1)Adjusted Operating Margin(1) High 30%s to Low 40%s

Adjusted Diluted EPS(1)Adjusted Diluted EPS(1) Comparable to Pfizer 2008 results of $2.42

Portfolio DiversificationPortfolio Diversification No product projected to represent more than 10% of revenues

Operating Cash FlowOperating Cash Flow $20+ billion

(1) Adjusted Income and its components and Adjusted Diluted EPS are defined as Reported Net Income and its components and Reported Diluted EPS, excluding Purchase Accounting Adjustments, Acquisition-Related Costs, Discontinued Operations and Certain Significant Items.

Note: These targets are subject to change as a result of potential material negative impacts related to foreign exchange fluctuations, macroeconomic volatility, industry-specific challenges, and changes to government healthcare policy, among other things.

Jeff KindlerChairman and Chief Executive Officer


The Right Transaction at the Right Time for the Right Reasons

Best Portfolio of Products, Pipeline and Capabilities in the Industry

Positioned for Sustainable Growth

Strong Revenue Diversification from Stable, Growing Areas

Leadership Positions in Key Growing Therapeutic Areas

Focused on Delivering Patient-Centric, Innovative Therapies

Combines Entrepreneurial, Focused Businesses with Global Scale

Delivering Value to Patients, Shareholders and Other Stakeholders


The Premier GlobalBiopharmaceutical Company

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Creating the Worldâ€™s Premier Biopharmaceutical Company